Executive Summary
Dynatrace Inc. reported a robust financial performance for Q1 2026, with total revenue reaching $477.3 million, reflecting a year-over-year increase of 19% and a quarter-over-quarter growth of 7.23%. Subscription revenue, which constitutes the majority of the company's income, also grew by 19%, fueled by a strong annual recurring revenue (ARR) of $1.82 billion, representing a 16% growth year-over-year. The management's focus on end-to-end observability solutions continues to resonate well with customers, as reflected in their strong commitment to the platform and the increasing adoption of its AI-driven capabilities. The company aims to leverage its momentum in consumption growth as it navigates a dynamic technological landscape.
Key Performance Indicators
Revenue
477.35M
QoQ: 7.23% | YoY:19.57%
Gross Profit
392.14M
82.15% margin
QoQ: 8.91% | YoY:20.86%
Operating Income
62.34M
QoQ: 45.26% | YoY:48.32%
Net Income
114.83M
QoQ: 192.15% | YoY:197.32%
EPS
0.16
QoQ: 23.08% | YoY:23.08%
Revenue Trend
Margin Analysis
Key Insights
- Total Revenue: **$477.3 million** (YoY: +19%, QoQ: +7.23%)
- Subscription Revenue: **$458 million** (YoY: +19%)
- Annual Recurring Revenue (ARR): **$1.82 billion** (YoY: +16%)
- Net Income: **$114.8 million** (YoY: +197.32%)
- Earnings Per Share (EPS): **$0.16** (YoY: +23.08%)